2005 - OPEC

particular the fourth quarter 2005, and in order to satisfy this market demand, ensure comfort-
able levels of stocks in the second half, as well as halt and reverse the price escalation, the
Conference decided to increase the production ceiling to 27.5 mb/d, effective immediately.The
Conference further authorised its President, after consultations with fellow Heads of Delega-
tion, to announce an additional 500,000 b/d increase in the ceiling, until its next Meeting,
should oil prices remain at current levels or continue to further rise. In taking this decision,
the Conference once again confirmed the Organization’s commitment to maintaining stability
and ensuring that global markets remain adequately supplied at all times. To that end, MCs
have already accelerated existing capacity expansion plans and are making timely investments
to expand capacity in the longer term. Moreover, this decision is a reaffirmation of OPEC’s
commitment to ensuring adequate supplies consistent with robust economic growth, in particular
in the emerging economies of the developing world. The Conference also agreed to continue
to closely monitor market developments and to take appropriate and prompt action, as and
when the need arises. With this in mind, the Conference decided to convene an Extraordinary
Meeting at the OPEC Secretariat, Vienna, on 7 June 2005.
The Conference approved the recommendation from the Board of Governors (BoG) and the
ECB to change the composition of the ORB, to-date made up of seven crudes, to a composition
of 11 crude streams representing the main export crudes of all MCs, weighted according to
production and exports to the main markets. The Secretariat is to calculate the new proposed
Basket on a trial, daily basis, in parallel with the current ORB, reporting back on the results
to the next Meeting of the Conference, in light of which the Conference shall announce the
effective date of implementation. The Conference passed Resolutions that will be published on
17 April 2005, after ratification by MCs. The Conference decided that its next Ordinary Meet-
ing will be convened in Vienna, Austria, on 19 September 2005. The Conference expressed
its appreciation to Seyed Mohammad Khatami, President of the IR Iran, the government and
people of the IR Iran, as well as the authorities of the City of Isfahan for having hosted the
Meeting and for the warm hospitality extended to the Conference and all delegates. In addition,
the Conference recorded its special thanks to Bijan Namdar Zangeneh, Minister of Petroleum
of the IR Iran, and his staff for the excellent arrangements for the Meeting.
Third Joint OPEC-IEA Workshop
Kuwait City, Kuwait, 15 May 2005
A joint workshop was organised today in Kuwait by the International Energy Agency and OPEC
on the energy outlook in the Middle East and North Africa (MENA). This event, hosted by the
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